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Spreadsheet disasters




       Nipun Mathur
        April 4, 2010
Error #1
Scenario
My boss asked me to perform a quick analysis for his
meeting in 1 hour

Problem
Copy pasted data from different spreadsheets to get
job done on time. Paster incorrect data, from miss-
matching dates. Performed back of the envelope
check but, no time to run extensive checks.

Error type
Mechanical error
Error #2
Scenario
Performing analysis on data with many degrees of
freedom requiring pivot table analysis.

Problem
Want to arrange analysis columns differently from pivot
tables alphabetically ordered columns. Updated column
names, applied formula to the 鍖rst column, and dragged
formula to all other cells. Formulae now incorrect for
columns.

Error type
Logic error
Error #3
Scenario
Working on a complex model with a team of people over
multiple weeks.

Problem
Each person developing different parts of the model. The
assumptions made by different people are different and
there is not enough documentation. When all parts are
put together the 鍖nal model produces incorrect results.

Error type
Documentation and planning error
Error #4
Scenario
Working on a accounting analysis consulting
project, with unfamiliar data. Developed model
without speaking with all groups involved.

Problem
Missed some variables that the model results
depend on.

Error type
Data omission error
Error #5
Scenario
Experienced analyst developing a routine model
at the end of the day.

Problem
Misses data and doesnt perform sanity check
because this is a routine task for him.

Error type
Overcon鍖dence

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Spreadsheet Errors Nm

  • 1. Spreadsheet disasters Nipun Mathur April 4, 2010
  • 2. Error #1 Scenario My boss asked me to perform a quick analysis for his meeting in 1 hour Problem Copy pasted data from different spreadsheets to get job done on time. Paster incorrect data, from miss- matching dates. Performed back of the envelope check but, no time to run extensive checks. Error type Mechanical error
  • 3. Error #2 Scenario Performing analysis on data with many degrees of freedom requiring pivot table analysis. Problem Want to arrange analysis columns differently from pivot tables alphabetically ordered columns. Updated column names, applied formula to the 鍖rst column, and dragged formula to all other cells. Formulae now incorrect for columns. Error type Logic error
  • 4. Error #3 Scenario Working on a complex model with a team of people over multiple weeks. Problem Each person developing different parts of the model. The assumptions made by different people are different and there is not enough documentation. When all parts are put together the 鍖nal model produces incorrect results. Error type Documentation and planning error
  • 5. Error #4 Scenario Working on a accounting analysis consulting project, with unfamiliar data. Developed model without speaking with all groups involved. Problem Missed some variables that the model results depend on. Error type Data omission error
  • 6. Error #5 Scenario Experienced analyst developing a routine model at the end of the day. Problem Misses data and doesnt perform sanity check because this is a routine task for him. Error type Overcon鍖dence